A recent study conducted by international law firm Pillsbury reveals that the number of operational clean hydrogen production projects worldwide is poised to double over the next five years, adding a substantial 48 gigawatts (GW) of capacity to the global hydrogen market. The firm's research indicates that by the end of 2028, 108 projects are expected to be actively producing clean hydrogen.
Pillsbury's hydrogen map highlights not only the significant growth expected in clean hydrogen production but also the surge in zero and low-carbon hydrogen projects worldwide. Currently, 94 sites are already actively producing hydrogen. This remarkable growth is evident since 2021 when Pillsbury initially published its research, with the number of tracked production projects in various development stages increasing by nearly 50%.
Europe emerges as a leader in the development of clean hydrogen, with Germany hosting 25 of the operational projects, equivalent to 27% of the total. The United States, the United Kingdom, and Japan each house seven operational sites.
Globally, there are 326 clean hydrogen production projects announced and at various stages of development, encompassing 310 green hydrogen projects and 16 blue hydrogen projects.
In terms of gigawatts of electricity to be generated from hydrogen energy in the next five years, Australia takes the lead with almost 28 GW expected to come online. The Netherlands follows with nearly 7 GW, followed by Ireland with nearly 4 GW, and China and Spain with 2 GW each.
The recent surge in hydrogen projects is a result of concerted efforts by governments worldwide to promote the hydrogen industry. The European Union (EU) initiated this momentum with its hydrogen strategy in 2020. The United States followed suit with measures such as a clean hydrogen production tax credit and the introduction of a hydrogen hubs program through the Infrastructure Investment and Jobs Act (IIJA). The UK also launched its hydrogen strategy in 2021.
Elina Teplinsky, Pillsbury's global energy industry leader, commented on the findings, saying, “The EU was the first to roll out measures to support the development of hydrogen, so we're ultimately seeing the market reap what it sowed. The US has thrown its full weight behind catching up with the EU, so it's not surprising we've seen strong recent growth, something that will likely continue in the years ahead. The hydrogen hubs programme will be a significant moment in the hydrogen race.”
Teplinsky emphasized the multifaceted applications of hydrogen and its potential to decarbonize various sectors but also highlighted hurdles, such as cost-effective hydrogen transportation methods, which will require continued innovation and investment to overcome.
